Louisiana Contractor's Exam - Business and Law
Questions with Correct Answers
100% Verified Graded A+
1. If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes?
Answer quarterly
2. How many employees does it take for the Fair Labor Act to be applied?
Answer 1
3. What accounting method records income when the service occurs and expense
when they are incurred?
Answer Accrual Method
4. What do the General Conditions of a contract do?
Answer Outline roles of the owner, architect, and engineer.
5. You are purchasing an insurance policy with a monthly premium of $300. If you
implement a safety program you can save 10% on the cost of the policy.The safety
program costs $400 to start and $15 a month to maintain it. What would be the net
difference in cost over three year period with a safety program?
Answer Net saving of $140
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,6. Written construction contract change order should include a description of the
modification to be made, any change in contract time and
Answer The change in the contract dollar amount
7. Which of the following is a written agreement between the owner and
contractor to change the contract?
Answer change order
8. What term identifies money withheld from progress payments to the con- tractor
and paid after the completion of the project?
Answer Retainage
9. When is final payment due?
Answer Final inspection, acceptance by owner and sub- mittal of proper documentation
must occur
10. After hiring a disabled person, which of the following can't you do, accord- ing to the
American with Disabilities Act?
Answer Require a medical examination of just the person you suspect is disabled.
11. The percentage of completion method of accounting does what
Answer recognizes profit as it is earned
12. Workers are on a job site where noise is very loud. Who is supposed to supply the
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, workers with ear protection?
Answer contractor (employer)
13. Where can you get accurate information about tax deposit schedules?
Answer IRS Publication Circular E
14. Which of the following statements correctly describes the cash method of accounting?
Answer Income / expenses are recorded at the time they are received / paid
15. What type of workplace insurance provides all the benefits required by law for
employees' who are killed or injured as a result of their employment
Answer Work- ers Compensation
16. If an employee is covered by Workers Compensation in the state of Utah and is doing
a job in Colorado and gets injured, are they covered by Utah Workers Compensation?
Answer Yes, the Utah fund would cover the employee but the employer should look into
getting coverage in state of Colorado also.
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23
Questions with Correct Answers
100% Verified Graded A+
1. If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes?
Answer quarterly
2. How many employees does it take for the Fair Labor Act to be applied?
Answer 1
3. What accounting method records income when the service occurs and expense
when they are incurred?
Answer Accrual Method
4. What do the General Conditions of a contract do?
Answer Outline roles of the owner, architect, and engineer.
5. You are purchasing an insurance policy with a monthly premium of $300. If you
implement a safety program you can save 10% on the cost of the policy.The safety
program costs $400 to start and $15 a month to maintain it. What would be the net
difference in cost over three year period with a safety program?
Answer Net saving of $140
1/
23
,6. Written construction contract change order should include a description of the
modification to be made, any change in contract time and
Answer The change in the contract dollar amount
7. Which of the following is a written agreement between the owner and
contractor to change the contract?
Answer change order
8. What term identifies money withheld from progress payments to the con- tractor
and paid after the completion of the project?
Answer Retainage
9. When is final payment due?
Answer Final inspection, acceptance by owner and sub- mittal of proper documentation
must occur
10. After hiring a disabled person, which of the following can't you do, accord- ing to the
American with Disabilities Act?
Answer Require a medical examination of just the person you suspect is disabled.
11. The percentage of completion method of accounting does what
Answer recognizes profit as it is earned
12. Workers are on a job site where noise is very loud. Who is supposed to supply the
2/
23
, workers with ear protection?
Answer contractor (employer)
13. Where can you get accurate information about tax deposit schedules?
Answer IRS Publication Circular E
14. Which of the following statements correctly describes the cash method of accounting?
Answer Income / expenses are recorded at the time they are received / paid
15. What type of workplace insurance provides all the benefits required by law for
employees' who are killed or injured as a result of their employment
Answer Work- ers Compensation
16. If an employee is covered by Workers Compensation in the state of Utah and is doing
a job in Colorado and gets injured, are they covered by Utah Workers Compensation?
Answer Yes, the Utah fund would cover the employee but the employer should look into
getting coverage in state of Colorado also.
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23
